Investors lured by the aura of Donald Trump lost more than $32 million in a failed venture in Mexico.
BY ELLIOT SPAGAT
ASSOCIATED PRESS
SAN DIEGO -- Trump flop in Mexico cost backers millions
Stephen and Linda Drake cast aside concerns about owning property in Mexico because they believed in Donald Trump.
The Southern California couple paid a $250,000 down payment on a 19th-floor oceanfront condo in Trump Ocean Resort Baja in 2006 before the first construction crew arrived.
But admiration for the celebrity developer and star of The Apprentice has now turned into anger and disbelief as Trump's luxury hotel-condo plan collapsed, leaving little more than a hole in the ground and investors out of their deposits, which totaled $32.2 million.
FACE IS ANNOYING
''I can't even stand to see Trump's face on TV,'' said Linda Drake, a psychologist, whose husband is a commercial airline pilot and financial advisor.
Investors were told last month that their money was spent and they won't get a penny back. A single mother in suburban Los Angeles lost $200,000 and won't be able to send her sons to private universities. A Los Angeles-area businessman lost a deposit of more than $1 million on four Trump units, including two penthouses.
The project's collapse comes at a delicate time for Trump, whose casino company, Trump Entertainment Resorts, filed for bankruptcy protection last month. He also is embroiled in a lawsuit to avoid paying debt on the struggling Trump International Hotel & Tower in Chicago.
Trump and his children heavily promoted the northern tip of Mexico's Baja California coast. He sold 188 units for $122 million the first day they went on a sale at a lavish event in a downtown San Diego hotel in December 2006.
''I went out and saw this site, and I was blown away by it,'' Ivanka Trump told The Associated Press in June 2007. ``From the minute I saw it, it was a deal I had to do.''
The location was a contrast to more expensive Mexican coastal markets like Puerto Vallarta, Los Cabos and Cancun, she said.
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it seems that in a bubble economy everyone seems smarts. Now that the bubble has popped the smart people are not looking so smart. Look at buffet buying GE at $22.50 plus other stupid investments. These people were never smart NEVER. They were silver spoons who got lucky to ride a bubble that never should of been a bubble a thus they never should of had that much success. Now the bubble has popped and they look dumber then average person.
ReplyDeleteI agree with the first post. They were silver spoon fed, had access to inside information, were not slapped on the hands when we, the normal people were, etc. But the most idiotic in this story is this line: “whose husband is a commercial airline pilot and financial advisor”. Don't you think this is a weired combination? I can only imagine his financial advises to others. Just look at his own financial decision. I feel no sympathy for these people.
ReplyDeleteThe Poor Woman can't send her sons to private
ReplyDeleteuniversities. OH THE HUMANITY! Bo hoo.
Trump is a bona fied scumbag. Period.
I knew things were discombobulated a couple
of years ago when witnessing whole towns
( my hometown included) Being over run and taken over by illegal aliens.They were buying houses and weren't even in the country 2 weeks.
The congress and past few presidents of the
Uninted States of America are guilty of
high Treason toward the CITIZENS of this once
great country. My Mother and Grandmother
were both members of the daughter of the American Revolution and Confederacy. They
were roll over in their graves at what is going
on in this country today!
Trumps days are numbered... he will be washed up within a YEAR..
ReplyDelete" if I could only be his APRENTICE"
hE IS PART OF THE PROBLEM "greed"
I hope somebody splits donald chumps wig with a tire iron.
ReplyDeleteThe Donald isn't the only real estate ripoff in this country. There's "the Real Estate Guys" (Robert Helms and Russell Gray)from San Jose, "the Blue Collar Investor Network" (Tom Turner) from Houston, "Mile High Capitol" (Rick Dryer), who by the way was just sent to prison for 132 years for his misdealings, and many many more. Mr. Robert Kiosaki needs to be thrown in the mix, as he has consistantly supported all of the above named frauds on various radio programs and live at many events. Everyone needs to steer clear of these lowlifes and please spread the word as fast and as far as you can.
ReplyDeleteFor Vancouver Canada you can also add Rob Rennie. He has soaked so many buyers into buying these 500 sq. ft. dumps for a half a million and up. Now its dropping like a rock.
ReplyDeleteA single mother in suburban Los Angeles lost $200,000 and won't be able to send her sons to private universities.
ReplyDeleteisnt that a crying shame!?
i never had $200,000 dollars in my life! im working my face off trying to scrounge up pennies to send myself to a second rate public university.
i love how people in the world have millions and millions of dollars to spend on their oceanfront penthouses while others cant afford food.